State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
No rulings match these filters
Try a different search term or clear the filters.
Is a chemical used to keep apples from ripening and spoiling exempt from sales tax as a food preservative?
Yes -- a fruit wholesaler's purchases of SmartFresh (1-MCP), a gas used to block apples' natural ripening and spoilage so they stay saleable for months longer, qualify as an exempt food preservative u…
Must an independent retailer operating on a Kansas military base under an AAFES concession contract collect Kansas sales tax?
Yes. The Department concluded that an independent AAFES concessionaire was not an instrumentality of the federal government or armed forces and therefore did not share the sales-tax immunity of an AAF…
Could a city downtown development authority sell Louisiana historic rehabilitation tax credits it earned even though it owed no state income or franchise tax?
Yes. The authority could sell the credits because a narrow taxpayer-only reading would defeat the rehabilitation incentive for public and nonprofit entities that validly earned credits but could not u…
Must an estate or trust recompute the alternative minimum tax on its 2005 federal Form 1041 to figure the Nebraska minimum tax, and which Schedule I lines change?
Yes. Revenue Ruling 23-05-1 directs that the 2005 federal alternative minimum tax for estates and trusts -- from Federal Form 1041, Schedule I -- be recalculated for Nebraska fiduciary income tax purp…
Does the alternative minimum tax on your 2005 federal individual return have to be recomputed to figure the Nebraska minimum tax, and which Form 1040N lines change?
Yes. Revenue Ruling 22-05-1 directs that the 2005 federal alternative minimum tax -- from Federal Form 6251 or the Form 1040A Alternative Minimum Tax Worksheet -- be recalculated for Nebraska individu…
How did South Carolina rank counties for the 2006 job tax credit, and did any county qualify for the reduced fee-in-lieu investment threshold?
SC Information Letter #06-1 publishes two county-ranking lists for new full-time jobs created in tax years beginning in 2006: one for credits first earned after June 18, 2002, and one for credits firs…
Could a taxpayer recover penalty and interest after mistakenly claiming the age-65 income exemption and reading about managed-audit waivers?
No. Juan Ortega exceeded the federal adjusted gross income limit for New Mexico's age-65 income exemption but claimed it after failing to read the instructions carefully. The resulting $142 underpayme…
Is installing an 'invisible fence' pet containment system a tax-exempt capital improvement, or does it stay taxable as tangible personal property installation?
No -- an invisible pet containment system doesn't qualify as a capital improvement because it isn't affixed to the property to the degree required (it's removed by simply unscrewing the transmitter an…
When a parent company's foreign-possessions subsidiary uses the federal Profit Split Method to allocate income from intangibles, how do the parent's resulting receipts get sourced in Tennessee's excise tax apportionment formula?
The Taxpayer's Profit Split Method income splits into two separately-sourced pieces for Tennessee's excise tax receipts factor. The half of the subsidiary's product-sales income assigned to the Taxpay…
How did Florida treat a cooperative apartment interest in the estate of a Maryland resident?
In this 2006 ruling, a cooperative interest was personal property represented by stock, not direct real-property ownership. Because Maryland reciprocally exempted nonresident personal property, Florid…
Does renting furnished corporate apartments for one week to one year count as operating a taxable hotel, or is it an untaxed real estate rental?
Under its current facts -- no food service, entertainment, concierge, or other customary hotel amenities, and services offered equally to long-term unfurnished tenants -- the landlord's furnished corp…
Did growth, acquisitions, a reverse merger, and management changes justify ending consolidated filing?
No. Florida had denied a similar request about a year earlier, and the taxpayer identified no material change in facts or law. Its store growth, acquisitions, reverse merger, subsidiary changes, new o…
How did sales tax apply to mixed water-restoration contracts covering real and personal property?
Each contract had to be classified separately. If unallocated work was predominantly a real-property repair, the restorer paid tax on materials and did not charge the customer tax. If predominantly a …
When did a South Carolina manufacturer report property, and who reported sold manufacturing assets under Revenue Ruling 05-20?
A manufacturer generally reported real and tangible personal property to the Department by the last day of the fourth month after its income-tax accounting year ended. Property tax was billed later an…
Are Guaranteed Auto Protection (GAP) premiums subject to Kansas sales tax?
No. The Kansas Department of Revenue treats a Guaranteed Auto Protection (GAP) premium as the sale of insurance, which is not a sale of tangible personal property or a taxable service. Therefore the G…
Can amounts rolled over from another state's 529 college savings plan, or rebates accumulated through the Upromise Rewards Service, be deducted as contributions to New York's 529 plan under Tax Law section 612(c)(32)?
Yes to both. Amounts rolled over from another state's 529 plan into the New York 529 Plan - including the earnings portion not taxed under IRC section 529(c)(3)(C)(i) - count as a deductible 'contribu…
Does the production-machinery exemption cover equipment, repairs, utilities, and building improvements at a standalone cold storage facility that holds fruit for processors?
No -- a standalone cold storage facility that merely holds fruit owned by processors (retarding ripening until the fruit is transported to the processor's own plant) doesn't qualify for New York's pro…
Is a building-materials retailer's restocking charge on returned merchandise subject to sales tax?
No -- a reasonable, separately stated restocking charge deducted from a customer's refund on returned merchandise isn't subject to sales tax, because it's a separate transaction from the cancelled sal…
Did a Texas LLC become subject to Louisiana corporation franchise tax merely because it elected federal and Louisiana corporation-income-tax treatment?
No. The check-the-box election controlled corporation income-tax treatment but not franchise-tax classification. The LLC remained treated as a limited partnership for franchise tax and therefore was n…
Could a Texas LLC surviving a merger with a corporation inherit that corporation's Louisiana net-operating-loss carryforward?
Yes. Because the LLC elected corporate tax treatment and succeeded by law to the corporation's assets, liabilities, and operations, it inherited the Louisiana NOL carryforward subject to the same fede…
Can an affiliated finance company (or the retail vendor that sold to it) claim a sales tax refund on bad debts from accounts the finance company bought at a discount?
Neither the affiliated finance company nor the retail vendor can claim a sales tax refund or credit for bad debts on accounts the finance company purchased, because the finance company doesn't qualify…
Does an environmental drilling company owe sales tax on its hydrogeologic site reports and the temporary groundwater monitoring wells it installs to prepare them?
An environmental drilling company's confidential hydrogeologic site-condition reports aren't subject to sales tax because report-writing isn't an enumerated taxable service, and it doesn't have to col…
Could a Louisiana part-year resident claim a credit for income tax paid to another state, and which return did the ruling require?
Yes, by electing to file the full-year Louisiana resident return and reporting all income. The 2005 ruling did not allow the other-state tax credit on the nonresident and part-year resident form.
When could Louisiana food retailers buy resale food without advance sales tax, and which prepared-food, bottled-water, packaging, and vending purchases remained taxable?
Food expected to be sold exempt for home consumption could be bought without advance tax, generally using Form R-1006. Prepared-food ingredients, bottled water, separately sold packaging, and vending-…
Are the gross earnings from the first Connecticut sale of a 5% biodiesel / 95% petroleum blend subject to the petroleum products gross earnings tax -- and does it matter whether the blend is motor vehicle fuel or heating oil?
It depends on how the blend is used. A blend that is 95% petroleum diesel and 5% pure biodiesel, sold as motor vehicle fuel, IS subject to Connecticut's petroleum products gross earnings tax on its fi…
Which phosphate-industry repairs, maintenance, and replacements qualified for the machinery exemption?
Qualifying fixed-location mining, beneficiation, chemical, and terminal operations could use the repair exemption for eligible industrial machinery. Repair included preventive maintenance and replacem…
Can a taxpayer convert an application or agreement under the old LB 775 Employment and Investment Growth Act into the Nebraska Advantage Act (LB 312)?
No. Revenue Ruling 29-05-9 holds that an application or agreement under the older Employment and Investment Growth Act (LB 775) cannot be converted into an application or agreement under the Nebraska …
Does equipment relocated from another state into a Nebraska Advantage Act project count as qualified investment, even though it was used out of state first?
Yes. Revenue Ruling 29-05-8 holds that qualified property moved into Nebraska and placed in service in the state for the first time after the Nebraska Advantage Act application date counts as investme…
Can Nebraska Advantage Act credits earned by a corporation be used by its unitary group even if that corporation isn't part of the combined corporate income tax return?
Yes. Revenue Ruling 29-05-7 holds that Nebraska Advantage Act credits earned by a corporation may be used by the unitary group that includes it, even when that corporation is not part of the 'corporat…
For the Nebraska Advantage Act, is an employee's 'rate of pay' figured on base pay or on total taxable compensation?
Rate of pay is based on base pay for regular hours worked, not on taxable compensation. Revenue Ruling 29-05-6 explains that under the Nebraska Advantage Act, only employees paid at a rate of at least…
For the Nebraska Advantage Act, on what date is property counted as an investment -- when placed in service, when built into real estate, or when leased?
Investment under the Nebraska Advantage Act occurs when tangible personal property is placed in service or incorporated into improvements to real estate. Revenue Ruling 29-05-5 explains that property …
For the Nebraska Advantage Act, how many hours does a salaried employee count as when figuring full-time-equivalent employees?
A salaried employee is treated as having worked the number of hours the employer has set as the regular workweek for a full-time hourly employee, for any period the full salary is paid. Revenue Ruling…
Can an employee who works at the Advantage Act project and also at other locations count toward new employees, the compensation credit, and retained withholding?
Yes, but only to the extent they are paid for work performed at the project. Revenue Ruling 29-05-3 explains that under the Nebraska Advantage Act, the number of new employees is based on hours worked…
For the Nebraska Advantage Act, what counts as the 'original cost' of equipment you buy and install -- and does your own installation labor count?
The 'original cost' of qualified property under the Nebraska Advantage Act is the amount you are required to capitalize for depreciation under the Internal Revenue Code (IRC) -- the purchase price plu…
Can a taxpayer file a Nebraska Advantage Act application for a subsequent project with the same activities without losing benefits, and how does timing affect the result?
Timing is everything. Revenue Ruling 29-05-11 holds that a Nebraska Advantage Act (LB 312) application for a subsequent project covering the same activities as a prior LB 775 or LB 312 project can be …
When computing your Nebraska Advantage Act investment, do you count the sales or use tax you paid on qualified property that is eligible for a refund?
No. Under Revenue Ruling 29-05-1, the amount of sales or use tax paid on qualified property that is eligible for a refund under the Nebraska Advantage Act is not counted as part of your investment -- …
Did a county's public-works purchasing procedures make incorporated construction materials tax exempt?
Yes, for purchases following the special condition. The county issued purchase orders with its exemption number, vendors billed it, it paid vendors directly, held title, and was insured for risk of lo…
When a hotel guest pays a third-party vendor directly by in-room credit card reader for pay-per-view movies, who owes Connecticut sales tax, and does the room occupancy tax apply?
The guest owes the 6% Connecticut sales and use tax, and no room occupancy tax applies. In-room pay-per-view movies are a taxable 'community antenna television service' under Conn. Gen. Stat. § 12-407…
Which South Carolina venues could sell or allow alcohol consumption on Sunday, January 1, 2006?
For Sunday, January 1, 2006, qualifying food-service and lodging venues needed a local-option permit to sell liquor by the drink, beer, or wine. Licensed nonprofit private clubs and properly permitted…
Is every property owned by a South Carolina nonprofit hospital exempt from property tax?
No. A nonprofit hospital's ownership alone did not exempt every property. RR 05-18 required the property to be devoted to and necessary for the hospital's functional operation. Mixed-use property coul…
How did South Carolina's 2005 small-business job tax credit work for businesses with 99 or fewer employees?
For tax years beginning in 2006, many qualifying businesses with 99 or fewer employees could enter the job tax credit with a monthly average increase of at least two new full-time jobs instead of 10. …
Does an out-of-state manufacturer exceed mere solicitation (and lose Public Law 86-272 protection) when a subsidiary delivers its products and it licenses university-developed products for a royalty?
No, its activities do not exceed mere solicitation, so it is not subject to Article 9-A tax under Public Law 86-272. Sales originate from out-of-state salesmen or independent contractors, orders are a…
Were a nonprofit yacht club's initiation fees and annual membership dues subject to sales tax?
The initiation fee was not taxable because it gave the member an equitable ownership interest satisfying the rule's evidence, voting, and dissolution-right requirements. Annual membership dues were di…
Were toll-booth advertising rights and Road Ranger vehicle sponsorships subject to Florida sales tax?
Toll-booth advertising payments were taxable because the agency could access the booth area to post, replace, and maintain displays, giving it a license to use real property. Road Ranger sponsorship f…
Could a taxpayer defeat New Mexico assessments based on IRS reports by merely disputing them, challenging information sharing, and then missing the hearing?
No. IRS Revenue Agent Reports showed that Ricardo Giron underreported $221,603 of 2000 taxable income and $124,105 of 2001 income while reporting zero New Mexico taxable income. Merely declaring the a…
Does an armored car company owe sales tax on separately priced 'cash management services' like ATM cassette loading and deposit counting?
An armored car company's separately priced 'cash management services' (ATM cassette preparation, change order preparation, currency verification, deposit and envelope processing) aren't taxable becaus…
Does an architectural firm owe sales tax on the printed 'bid set' copies of blueprints it separately charges clients for at cost?
An architectural/engineering firm's design fee isn't taxable, but when it separately charges its clients for printed 'bid set' copies of final working drawings (at cost, for use soliciting contractor …
Is an unauthorized foreign life insurer that makes New York mortgage loans through a disregarded LLC subject to Article 33 instead of Article 9-A, and what is its tax?
It is subject to Article 33, not Article 9-A, and its computed tax is zero but it must still file. Because the single-member LLC is disregarded, its New York mortgage-lending activity is treated as th…
Were mineral-rights payments for access to agriculturally assessed property subject to rent tax?
No, on the existing classification. The county property appraiser assessed the land as agricultural property, so payments under the mineral-rights agreement were outside the real-property rental tax u…
When a Connecticut retailer swaps a defective or unsatisfactory item for an identical or similar one at no extra charge, is any additional sales tax due -- even without the original receipt or more than 90 days later?
No additional Connecticut sales tax is due. When a retailer replaces a defective or unsatisfactory item with an identical or similar item for no additional charge (an "even exchange"), that is neither…
Was a yacht used outside Florida for more than six months subject to use tax when brought into Florida?
No, with the required proof. The yacht was bought outside Florida and used in another U.S. taxing jurisdiction for more than six months under conditions allowing that jurisdiction to impose tax. The o…
Did a free weekly shopper publication qualify for Florida's advertising-publication exemption?
Yes, based on the sample issues and continued compliance. The weekly publication was distributed free through qualifying channels and more than 60% of its printed inches were advertising. Each issue h…
Was a mobile PET-scanner arrangement a taxable equipment lease or a nontaxable operated service?
The healthcare-provider agreement was a nontaxable service because the taxpayer supplied the technologists and retained possession, direction, and operating control. The scanner itself did not qualify…
Did one annual customer visit or the described drop shipments create Florida sales-tax nexus?
No, under the facts and 2005 analysis. One annual 12-hour visit to one customer, with no orders taken, was inconsequential. The described out-of-state shipments to Florida customers, including a vendo…
Under South Carolina's 2005 guidance, when did a retailer have to remit a county's local tax on delivered goods?
Under RR 05-16, a retailer with South Carolina physical-presence nexus had to remit a delivery county's tax when it purposefully used or targeted that county's market. Delivery by the retailer's vehic…
Who owed sales or use tax when a property manager bought operating supplies for a commercial property owner?
For these agreements, the property manager provided a nontaxable management service and did not resell the supplies. The commercial property owner was the purchaser of goods delivered for immediate us…
Are sales of restaurant equipment to American Legion and VFW posts exempt from Kansas sales tax?
Taxable. A seller must collect Kansas sales tax on restaurant equipment it sells to American Legion and VFW posts. The 1998 exemption only relieved members from tax on their membership dues (K.S.A. 79…
Can a parking company keep only electronic records from its Ticketech ticketing system and stop storing thousands of boxes of paper parking tickets?
Yes, in principle -- New York's electronic recordkeeping regulations apply broadly to any tax record a taxpayer must retain, so a parking operator's Ticketech electronic records can satisfy the Tax La…
Does an out-of-state data backup company owe New York sales or use tax on its subscription service and the connector software it installs on subscribers' computers?
The subscription fee for an off-site data backup and recovery service isn't subject to New York sales tax because it's not an enumerated taxable service (and the data being stored isn't taxable tangib…
Can an asbestos removal contractor get a sales tax refund on the disposable materials and protective equipment it buys, since those items end up contaminated and legally owned by its customer as waste?
Yes -- because federal and state law make the customer the legal owner of contaminated asbestos waste, an asbestos-removal contractor's disposable supplies (suits, gloves, bags, filters, sheeting, etc…
How these rulings are useful
- See how the rule applies: A letter ruling shows how a state revenue department actually applied the tax law to a specific business and set of facts.
- Plan with confidence: Find a ruling with facts close to yours before you charge, remit, or claim an exemption.
- Binding only on the requester: A ruling is binding on the department only for the taxpayer who asked. It is persuasive, not a substitute for your own ruling or professional advice.
- Research across states: Compare how different states treat the same issue, from SaaS and food exemptions to nexus and contractor purchases.